In an interview with CNBC-TV18, Ashish Shanker, MD & CEO of Motilal Oswal Private Wealth, urged a cautious yet optimistic approach to the new year, emphasising the importance of balanced portfolios and tempered expectations.
Shanker acknowledged the strong performance seen in the markets, with Indian equities delivering consistent double-digit earnings growth—a historic achievement over the past five years. “There’s very good reason behind the rally in Samvat 2080,” he stated, highlighting India’s resilient economy and solid corporate performance. However, he cautioned that replicating such stellar returns might be difficult.
As investors consider their next steps, Shanker advises maintaining a moderate outlook. “What has happened in the last two to three years is very difficult to replicate in the next two to three years, although the equity outlook remains promising.”
However, lingering risks make a balanced approach essential. Shanker pointed to geopolitical tensions and the upcoming US elections as potential disruptors in the months ahead.
Also read: Market kicks off Samvat 2081 with strong gains; Sensex adds 335 points, Nifty Bank and Midcaps rally
He advocated for a diversified portfolio that includes gold, not merely for potential returns but as a safeguard against any global or domestic upheavals.
Radhika Gupta, CEO of Edelweiss AMC, noted that investor confidence has grown exponentially, with mutual fund inflows exceeding ₹40,000 crore month after month, even as markets experience fluctuations.
Gupta attributed this sustained inflow to the deepening understanding of equities across the country, extending beyond metropolitan centres to tier-two, three, and even four cities. “I often think we underestimate the confidence even in tier-three and tier-four India in mutual funds,” Gupta shared, emphasising that the “India equity story is a structural story.”
Gupta is also optimistic about the continued rise in systematic investment plan (SIP) contributions, envisioning a future where India has a ₹1 lakh crore monthly SIP book. She observed that investors who entered the market post-COVID are developing resilience and a long-term view—a critical shift from the reactive behaviour seen in past downturns.
“When markets fall, people are adding; they aren’t closing down SIPs. There’s a lot of awareness,” she observed. However, she also cautioned against excessive reliance on thematic funds, advising retail investors to seek a “middle path” in their investment approach.
Looking forward, both Shanker and Gupta agree that while the Indian market outlook remains optimistic, it is essential to manage expectations and ensure portfolios are diversified. Shanker’s advice to maintain some allocation in gold aligns with Gupta’s perspective on encouraging more measured, balanced investing among retail investors. They collectively acknowledge that the Indian retail investor base is maturing, with a broader understanding of market risks and a deepening commitment to equities.
Watch the accompanying video for the entire discussion.